Well Lead Medical Co., Ltd. (SHSE:603309) signed a letter of intent to acquire Jiangxi Langhe Medical Instrument Co.,Ltd. from a group of shareholders for approximately CNY 520 million on February 13, 2018. Under the terms, Well Lead Medical Co., Ltd. will issue 16.4 million shares for CNY 16.35 per share and cash of CNY 159.1 million to certain shareholders while it will issue only cash consideration of CNY 92.9 million to certain shareholders. The cash consideration will be funded from a private placement of 40 million shares with Wang Xiaoling and others for expected proceeds of CNY 268 million. As of July 20, 2018, Well Lead Medical Co., Ltd. will only pay cash as the consideration which is expected to be lower than 50% of the company's 2017 net audited assets (CNY 446.04 million). Concurrently, Well Lead Medical Co., Ltd. terminated the acquisition through payment of cash and issuance of shares and raising of supporting funds. For the year ended December 31, 2017, Jiangxi Langhe Medical Instrument Co.,Ltd. reported total assets of CNY 147.1 million, operational income of CNY 96.8 million, net income of CNY 36.2 million and net assets of CNY 105.3 million. The transaction is subject to approval from the Board of Directors and shareholders of Well Lead Medical Co., Ltd. and Jiangxi Langhe Medical Instrument Co., Ltd. and approval of China Securities Regulatory Commission. The transaction does not need pre-approval from the State-owned Assets Supervision and Administration Commission department. The Board of Directors of Well Lead Medical Co., Ltd. approved the deal as on April 13, 2018. As of April 25, 2018, Well Lead Medical Co., Ltd. received an inquiry letter from Shanghai Stock Exchange concerning information about the transaction. On May 4, 2018, the transaction was approved by the shareholders of Well Lead Medical Co., Ltd. On July 31, 2018, the termination of transaction consideration in shares and cash was approved by the Board of Directors of Well Lead Medical Co., Ltd. Hu Feirong, Qi Xuefei and Li Zhigang and Jianjian Zhou of Everbright Securities Company Limited (SHSE:601788) acted as financial advisors, Xu Zhigang, Zhuang Haojia, Lin Lin and Zhang Xuebing of Zhong Lun Law Firm acted as legal advisors, GP Certified Public Accountants Co Ltd and Feng Kunzong, Chen Danyan and Jiang Hongfeng of Guangdong Zhengzhong Zhujiang Certified Public Accountants acted as auditors for Well Lead Medical Co., Ltd. Xiong Zuan, Gao Xuefei and Chen Xidong of Guangdong Lixin Asset Valuation Land Real Estate Appraise Co., Ltd. did assets assessment.